Vitol raises its bid to $2.3bn in its acquisition offer for Vivo Energy
VIVO Energy, the pan African fuel service station group, saw its share price leap 21.32 percent to R28 on the JSE yesterday following a higher, $2.3 billion (R36.5bn) offer to acquire it from global energy and commodity trading group Vitol.
The offer follows on the unanimous rejection of a first offer that Vitol made in February, at $1.55 per Vivo share.
Vivo, which markets Engen and Shell fuels and lubricants across some 2 400 service stations, announced yesterday that VIP II Blue B.V. (BidCo), a subsidiary of Vitol Investment Partnership II, itself an investment vehicle advised by Vitol Holding employees, had reached agreement to make a cash offer for Vivo, to be effected by means of a scheme of arrangement.
Vitol Africa B.V. and VIP Africa II B.V., which are concert parties of BidCo, have been founding shareholders of Vivo, following Shell’s sale of some of its downstream business in 2011, and currently hold a 36 percent interest in Vivo.
The new offer was pitched at $1.85 for each Vivo share, comprising $1.79 in cash per share, $0.04 per share in the form of a 2021 final dividend, and $0.02 per Vivo share in the form of a 2022 special dividend.
The offer, equivalent to 139 pence (R29.46) per Vivo share based on the announcement exchange rate, would represent a premium of approximately 24.6 percent to the closing price per Vivo share of 111p on November 24, 2021.
It also represented a 30.6 percent premium to the volume weighted average price per Vivo share of 106p in the one month to November 24, and a 41.8 percent premium to the average price per Vivo Share of 98p in the 12 months to November 24, a statement from Vivo said.
If the effective date of the deal was expected to occur after the 2022 interim dividend record date – expected to be in August 2022 – the cash offer was $1.83 for each Vivo Share plus a 2022 interim dividend of up to $0.02 per Vivo share, while a variable cash offer would comprise $1.79 in cash for each Vivo share plus $0.04 per Vivo Share in the form of a 2021 final dividend.